v3.25.4
Revenue from Contracts with Customers
 9 Months Ended
Dec. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers
2. Revenue from Contracts with Customers

Disaggregation of Revenue

The following tables summarize the Company's revenue from contracts with its customers disaggregated by segment and product type for the three and nine months ended December 31, 2025 and 2024:

Three Months Ended December 31,
20252024
DigitalPrint (1)TotalDigitalPrint (1)Total
Revenue by Segment:
K-12$103,513 $24,676 $128,189 $107,976 $42,206 $150,182 
Higher Education203,104 22,259 225,363 162,717 19,043 181,760 
Global Professional28,249 7,990 36,239 26,398 9,133 35,531 
International28,819 15,242 44,061 30,561 14,328 44,889 
Other (2)— 310 310 — 4,131 4,131 
Total Revenue $363,685 $70,477 $434,162 $327,652 $88,841 $416,493 
___________________
(1)
Print revenue contains print and multi-year print products.
(2)
Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's CODM.
    

Nine Months Ended December 31,
20252024
DigitalPrint (1)TotalDigitalPrint (1)Total
Revenue by Segment:
K-12$330,746 $427,521 $758,267 $328,516 $501,138 $829,654 
Higher Education558,099 62,605 620,704 473,966 54,530 528,496 
Global Professional79,543 31,663 111,206 76,742 34,490 111,232 
International72,544 73,326 145,870 79,095 79,282 158,377 
Other (2)— 3,012 3,012 — 278 278 
Total Revenue $1,040,932 $598,127 $1,639,059 $958,319 $669,718 $1,628,037 
___________________
(1)
Print revenue contains print and multi-year print products.
(2)
Includes in-transit product sales and intersegment revenue adjustments that are not included within segment revenues reviewed by the Company's CODM.

In addition, the Company has included a further disclosure of revenue from contracts with its customers disaggregated by segment and by Re-occurring Revenue and Transactional Revenue, for the three and nine months ended December 31, 2025 and 2024.

Re-occurring Revenue represents revenue from offerings that are generally sold as digital subscriptions and multi-year print products. Revenue from digital subscriptions, is recognized ratably over the term of the subscription period as the performance obligation is satisfied and revenue from multi-year print products (e.g., workbooks) is recognized at a point in time, upon shipment of the print product to the customer, in each academic year within the contract term. Transactional Revenue includes revenue from both print and digital offerings that are recognized at a point in time upon shipment of the print product or delivery of the digital offerings. In addition, Transactional Revenue includes revenue for amounts billed to customers in a sales transaction for shipping and handling.
Three Months Ended December 31,
20252024

Re-occurring
Revenue		Transactional
Revenue		TotalRe-occurring
Revenue		Transactional
Revenue		Total
K-12
$110,706 $17,483 $128,189 $112,537 $37,645 $150,182 
Higher Education
196,016 29,347 225,363 146,854 34,906 181,760 
Global Professional
25,293 10,946 36,239 24,438 11,093 35,531 
International
25,445 18,616 44,061 27,550 17,339 44,889 
Other
— 310 310 — 4,131 4,131 
Total Revenue
$357,460 $76,702 $434,162 $311,379 $105,114 $416,493 

Nine Months Ended December 31,
20252024

Re-occurring
Revenue		Transactional
Revenue		TotalRe-occurring
Revenue		Transactional
Revenue		Total
K-12
$510,583 $247,684 $758,267 $489,656 $339,998 $829,654 
Higher Education
517,247 103,457 620,704 438,441 90,055 528,496 
Global Professional
73,605 37,601 111,206 70,614 40,618 111,232 
International
66,033 79,837 145,870 71,120 87,257 158,377 
Other
— 3,012 3,012 — 278 278 
Total Revenue
$1,167,468 $471,591 $1,639,059 $1,069,831 $558,206 $1,628,037 

Deferred Commission Costs

    The Company's incremental direct costs of obtaining a contract, which consist of sales commissions, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred commission costs as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred commission costs are included in Prepaid and other current assets, and Other non-current assets, respectively, in the consolidated balance sheets. The Company expenses commission costs when incurred related to customer contracts that have a duration of less than one year. The Company recognizes these costs within Operating and administrative expenses in the consolidated statements of operations.

Deferred commission costs consisted of the following:

December 31, 2025March 31, 2025
Current$18,267 $22,449 
Non-current22,593 18,794 
Total Deferred Commission Costs $40,860 $41,243 

    Amortization expense related to deferred commission costs was $3,350 and $2,903 for the three months ended December 31, 2025 and 2024, respectively, and $15,983 and $12,735 for the nine months ended December 31, 2025 and 2024, respectively.
Deferred Royalties

The Company's direct costs of fulfilling a contract, which consist of royalties, are deferred and amortized over the expected period of benefit or the related contractual renewal period, depending on whether the contract is an initial or renewal contract, respectively. The Company classifies deferred royalties as current or non-current based on the timing of when the Company expects to recognize the expense. The current and non-current portions of deferred royalties are included in Prepaid and other current assets, and Other non-current assets, respectively, in the Company's consolidated balance sheets. The Company recognizes these costs within Cost of sales (excluding depreciation and amortization) in the consolidated statements of operations.

Deferred royalties consisted of the following:

December 31, 2025March 31, 2025
Current$70,034 $76,186 
Non-current55,475 61,495 
Total Deferred Royalties $125,509 $137,681 

Amortization expense related to deferred royalties was $9,397 and $10,091 for the three months ended December 31, 2025 and 2024, respectively, and $67,654 and $65,280 for the nine months ended December 31, 2025 and 2024, respectively.

Contract Assets and Contract Liabilities

The Company's contract assets consist of unbilled receivables that are recorded for contracts with performance obligations that have been satisfied but have not yet been billed. Contract assets are included in Accounts receivable, net, on the consolidated balance sheets.

The Company's contract liabilities consist of revenues from its digital subscription products and multi-year print products that are deferred at the time of sale. The Company classifies contract liabilities as current or non-current deferred revenue on the consolidated balance sheets based on the timing of when the Company expects to recognize revenue.

Contract assets and contract liabilities consisted of the following:

December 31, 2025March 31, 2025
Contract assets$8,974 $29,032 
Contract liabilities (deferred revenue):
Current813,153 794,031 
Non-current883,663 882,156 
Total Contract Liabilities $1,696,816 $1,676,187 
Total contract liabilities by segment consisted of the following:

December 31, 2025March 31, 2025
Total Contract Liabilities by Segment:
K-12$1,334,884 $1,279,585 
Higher Education253,693 297,316 
Global Professional72,252 62,348 
International35,467 33,407 
Other (1)
520 3,531 
Total Contract Liabilities
$1,696,816 $1,676,187 
_______________
(1)
Includes contract liabilities for in-transit product sales that are not included in segment contract liabilities.
Revenue recognized during the three and nine months ended December 31, 2025 from amounts included within deferred revenue as of March 31, 2025 was $98,776 and $695,410, respectively. Revenue recognized during the three and nine months ended December 31, 2024 from amounts included within deferred revenue as of March 31, 2024 was $96,970 and $635,394, respectively.

Estimated revenue expected to be recognized in future fiscal years ended March 31, related to amounts included within deferred revenue as of December 31, 2025 was as follows:
2026 (remaining three months)
$264,146 
2027628,628 
2028350,916 
2029225,740 
2030122,643 
Thereafter104,743 
$1,696,816